Chapter 4. Savings and investment vehicles, what is the difference?

To make your money work for you, you need to differentiate between savings vehicles and investments vehicles.

 

How to

 

 

1. Savings vehicles

Savings vehicles are relatively safe in protecting the principal capital in addition to offering a low to a modest return on interest payment. Saving accounts are mostly liquid (you can get to them as needed) so a cash withdrawal is easily accessible.

 

2. Investment vehicles

Investment vehicles are usually non-liquid. Investors have to relinquish their control over the cash and sometimes risk losing a part or even the entire investment. 

 

Practice

Now that you know the difference between saving and investing vehicles, think of paying it forward and discuss your preference with a friend or a family member.

 

Congratulations! You can move on to Chapter 5. Is it ever too early/late to plan for retirement?

To review the full module on Saving & investing, click here.